Hackernoon logoHow Money will be Reinvented and What it will Mean for your Wealth by@ChrisHerd

How Money will be Reinvented and What it will Mean for your Wealth

Chris Herd Hacker Noon profile picture

@ChrisHerdChris Herd


At Nexves, we are tokenizing interest on traditional bank accounts, where the money accrued is reinvested in asset classes 99% of people can’t access and the tokens equate to your fractional ownership on the fund (proof-of-savings as a mining mechanism). We are already in discussion with a number of high-profile Venture funds with respect to partnering with them on these investments and are exploring similar arrangements with commercial and international real estate brokers. A majority of people aren’t going to wake up tomorrow and begin using cryptographically secure wallets or tokens for exchanging or storing value. The onus then is on innovators to create products and services which remove barriers to participation. This means integrating blockchain and crypto within what currently exists and providing a more valuable service to consumers making the choice to migrate obvious.

From there we will build a suite of services enabled by the Tokenisation. Traditional bank accounts are unable to compare data between customers as they have a fundamental lack of actionable intelligence. We can pay people to reveal the information we require, which lets us tell users on the platform how much they should be paying for specific services based on what other people are. Eventually, we will create a premium service around this data where we will negotiate costs down on users’ behalf. Simultaneously, we will use this scale to negotiate better deals for everyone, collectively bargaining at an unprecedented scale, providing unmatched transparency for recurring expenses.

The third part of the platform enables us to incentivize desirable behaviors at platform scale. 100,000 people requesting that their local supermarket begins stocking a consumer product we are invested in or 1,000,000 people sharing a message on their social media profiles is the power we are harnessing. We are able to de-risk investments, lower CAC and outsource discovery of investments to our partners. This plays to the rational human instinct to act selfishly. Users are paid to do certain things, increasing their share of the investment fund, while growing everyone else’s investment at the same time.

Next, we anticipate opening the platform to enable Web 3.0 to emerge. My strongest contrarian belief is that advertising as a form of revenue evaporates in the next decade which requires an answer to the question of what replaces it? Digital taxation. Where you consume content, products, services and data online, you forfeit a % of your CPU/GPU which mines tokens and distributes them to creators based on the duration of your attention.

To overcome this there has to be frictionless exchange, digital taxation enables that. To understand forthcoming innovations it is often best to see what is happening at the edge of legality: i.e. Napster — > Spotify. This is already happening on sites which have been barred from Adword earning.

To provide the infrastructure for the emergence of Web 3.0 we need to allow products and service to emerge which are linked to your wallet. Anonymity is assured, with your token wallet encrypted and separate from your financial management account. This enables controls to be placed by creators of services. Maintaining ownership of data is a massive problem online and it will become increasingly problematic unless we establish protocols to protect us. The easiest way to imagine this is with the emergence of Social Networks. Snapchat, but with user protection where bad actors can be removed. Think strikes for screenshots, or micro-overlays on photos which provide traceability. Users who misbehave and break trust can be removed and punished financially with tokens paid to victims as compensation. Similar issues arise on dating services where trusting that people are who they say they cause trouble. Peer-to-peer services are already using review systems to ensure trust, but these are anchored to a single platform. Nothing makes more sense than a FinTech account acting as a universal passport for participation on the web to ensure trust.

As the platform matures, the tokens become a digital currency and a secondary market for transactions emerge. Where we invest in international property, users on the platform can rent nights with their tokens. The spent tokens would be burned raising the value of every other token incrementally. Where John Law failed with the establishment of an asset-backed currency in the 1700’s, technology can enable its success now. If it is depreciatory, there is radical transparency with respect to the assets underpinning it and spent tokens are burned tremendous value can be stored, saved or spent by participants. The economy around the currency enriches the remaining tokens, creating a compelling reason for the increase of exchange.

The only way to begin realising that vision on any meaningful scale is by creating innovative products which let people who aren’t convinced of a tokenised world to participate without any need to alter their behaviour.

That is the ramp I am currently building at Nexves



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